Summary
Bank of America Corporation reported a solid first quarter for 2019, with net income of $7.3 billion, or $0.70 per diluted share, an increase from $6.9 billion, or $0.62 per diluted share, in the prior year period. This growth was driven by higher net interest income and reduced noninterest expenses, though partially offset by lower noninterest income and an increased provision for credit losses. Total assets grew to $2.4 trillion, supported by increased trading account assets and the adoption of new lease accounting standards. The company also continued its capital return program, repurchasing $6.3 billion of common stock during the quarter. Operationally, the bank demonstrated effective management across its segments. Consumer Banking saw strong growth in net income, bolstered by higher net interest income and lower expenses. Global Banking also reported increased net income, driven by higher revenues. Global Wealth & Investment Management experienced a revenue decline due to lower market valuations impacting investment and brokerage services, but improved its operating margin. Global Markets faced a challenging quarter with decreased net income, primarily due to lower trading revenues. The company is actively managing its capital position and liquidity, with all regulatory capital ratios remaining well above minimum requirements.
Financial Highlights
35 data points| Revenue | $23.00B |
| Interest Expense | $5.79B |
| Net Income | $7.31B |
| EPS (Basic) | $0.71 |
| EPS (Diluted) | $0.70 |
| Shares Outstanding (Basic) | 9.73B |
| Shares Outstanding (Diluted) | 9.79B |
Key Highlights
- 1Net income increased to $7.3 billion ($0.70 per diluted share) from $6.9 billion ($0.62 per diluted share) in Q1 2018.
- 2Total revenue remained stable at $23.0 billion, with net interest income increasing by $606 million due to higher interest rates and loan/deposit growth.
- 3Noninterest income decreased by $672 million, primarily driven by lower trading account income and investment/brokerage services income.
- 4Noninterest expense decreased by $618 million due to efficiency savings, lower FDIC expense, and reduced amortization of intangibles.
- 5Provision for credit losses increased by $179 million, mainly due to a specific client charge-off and portfolio seasoning.
- 6Common equity tier 1 (CET1) capital ratio stood at 11.6% under the Standardized approach, well above regulatory minimums.
- 7The company repurchased $6.3 billion of common stock in Q1 2019.